Should You Get a Financial Advisor?

Seniors should consider getting advice on some of the most important financial decisions they will face in retirement.

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It’s true that there is a ton of information online to help you manage your money, but financial advisors do more than just offer you financial advice.

They help you create your financial goals, they help you make financial plans for your future and they offer you emotional support to help you stay on a good financial track.

Unlike online information, financial advisors know the ins and out of the financial market. They know how to address complex challenges and know how to capitalize on trends.

They will help you save for that dream house you want and also help you invest properly and reap huge returns.

In this article, we’ll look at the reasons you should hire a financial advisor, situations when you need a financial advisor and the cost of hiring a financial advisor.  

Reason You Should Hire a Financial Advisor

Having a financial advisor comes with many benefits. Besides giving you general financial advice and recommendations, a financial advisor analyzes your finances and how they are working for you.

Here are the major benefits you gain from hiring a financial advisor:

Advisors Understand the Market

Financial experts are knowledgeable about the financial world. Therefore, there are knowledgeable about matters of market trends and sectors that are growing.

A financial advisor will help you navigate the financial market properly and will answer all your financial questions.  They will help you understand how to be profitable in the market by taking advantage of financial trends that already exist.

Furthermore, they will offer you financial advice depending on the state of your business and how to advance it.

Receive Expert Advice for Your Future

It’s hard to plan for your future regardless of how old you are. Things like life insurance, annuities, wills, IRAs and 401Ks can all seem confusing and you aren’t sure whether or not you’ll need them in retirement.   

Hiring a financial advisor will help you make clever decisions regarding the items above to help secure your current and future financial goals.

If you’re a student, a financial advisor will assist you to curate a plan to clear your student loans and establish emergency savings.

An advisor will show you how to achieve your goals, like saving a down payment for a house by recommending the highest interest accounts to save your money in.

Advisors Will Offer You Unbiased 3rd Party Opinions

One of the greatest advantages of hiring a financial advisor is that they can provide an unbiased perspective based on your finances. Our financial decisions are often affected by one’s personal opinions and perspectives. Having an unbiased 3rd party can help counteract this problem.

An advisor will guide you into making smart decisions with no prejudice. The advisor will recommend the best investment based on your objectives. Professional guidance will help you from making hasty or miss-informed decisions.

 Advisors Create Strategies with a Clear Action Plan

In addition to offering you recommendations for your money, financial advisors help you create detailed financials plans that contain strategies on how to reach your goals.

Whether you’re thinking or early retirement, getting on the property ladder or paying for college, a financial advisor will challenge you to assess your goals and help you create a realistic, actionable plan to achieve them.

The plan will include action steps such as laying out asset allocation depending on available money and your risk tolerance as well as recommending investments you can make.

When to Consider Getting a Financial Advisor

Depending on people’s needs, we often use financial advisors in two ways:

  • For one-time services
  • For long-term services

Some individuals only rely on financial advisors when they need specific financial advice or if they want to meet a certain goal. Others rely on a financial advisor’s recommendations and input on an ongoing basis.

However, there are some situations where the need for a financial advisor is especially important.

Below, we’ve mentioned some situations where it is a good idea to hire a financial advisor.

When You’re About to Retire

Retirement is like starting a new chapter in your life. But one of the major downsides that come with retirement is losing your primary source of income.

You must shift from a regular paycheck to a fixed income and a financial manager will properly help you adjust to the change.

An advisor will help you address the various questions you have about retirement including taxes, fees, and how to withdraw your retirement savings.


If you’re getting engaged or married, you need to talk to a financial advisor. And it’s even more important to have a conversation about money with your partner before you get married.

It’s important to start on the same page with your partner, especially when it comes to money as money mistakes and disagreements can destroy relationships.

There’s also the issue of sharing expenses after marriage, which can result in several complex financial questions that only a financial manager can answer.

An advisor can also help you with estate planning documents, selecting the right child care, or how to plan for college.

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You’re Self-Employed

If you’re a freelancer or business owner, managing your finances can be a bit tricky. There are many factors in play like different financial rules, different opportunities, and different taxes.

Luckily, a financial advisor can help you make moves that better serve your interest.

With the help of financial advisors, self-employed people can figure their finances properly. Whether it’s your business, investment, or income, a financial advisor will help you take your finances to the next level.   

When You Find Yourself In a Complex Financial Situation

If you’re facing complex or confusing financial questions, an advisor can help you out.

Whether its clearing student loans, caring for an elderly family member or owning multiple properties, there are always situations you can’t handle on your own and you need someone with professional financial experience.

If you have any questions on investment and saving, a financial advisor can always make the right recommendation because of their vast knowledge of the financial world. They know how to navigate complex challenges and capitalize on market trends.

How Much Does a Financial Advisor Cost?

Perhaps the biggest reason people tend to avoid using financial advisors is the cost. Fortunately, you can find them at a reasonable price due to increased competition both online and offline.

Expect to pay somewhere between $100-$1,000  when you engage the services of an advisor.

  1. If you want a comprehensive, detailed financial plan, a financial advisor might charge you a flat rate of $1,000 to $2,000.
  2. Some financial advisors work based on how much you want to invest. Let’s say you want to invest $200,000, and the advisor might charge an annual fee or 1% or $2,000.
  3. Others get paid by investment companies and banks.  Their costs work differently and you don’t pay anything out of pocket. 

Bottom Line

To find the right financial advisor you should first research a few different options to find the right advisor for your particy=ular circumstances.

 You need to find a financial advisor who will not only help you with your financial planning process but also provide you with unbiased opinions and will work in your best interest.

With that said, you can search for reputable advisors online. But remember to read reviews, experiences, educational background, and vet each individual before making a final decision.